Decentralized Pension System (DPS)

Overview

The Decentralized Pension System (DPS) is a proof-of-concept smart contract implementation that allows users to create and manage their own pension funds using any ERC20 token. This system leverages blockchain technology to provide a transparent, secure, and self-managed pension solution with Aave integration for yield generation.

Features

• ERC20 Token Support: The contract can be deployed for any ERC20 token, allowing for multiple markets.
• Aave Integration: Users can invest their deposited funds into Aave to generate yield.
• Flexible Withdrawals: Funds can be withdrawn at any time by the account holder.
• Proof of Life: Regular interactions with the contract serve as proof of life, ensuring the account holder's continued access.
• Customizable Fallback Wallet: Users can set and update a fallback wallet to receive funds in case of prolonged inactivity. If not set, the user's own address is used as the fallback.
• Customizable Fallback Period: Users can set their own fallback period (between 90 days and 3 years).
• Open Fallback Withdrawal Initiation: After the fallback period elapses without activity, any wallet can initiate a withdrawal, but funds are sent only to the designated fallback wallet or the user's address if no fallback is set.
• Pausable: The contract can be paused by the owner in case of emergencies.

Smart Contract

The core of the DPS is the ERC20TokenVault smart contract. Key components include:

• Deposit and withdrawal functions for the specified ERC20 token
• Invest and deinvest functions for Aave integration
• Proof of life mechanism, automatically updating on interactions
• Fallback wallet system with customizable periods
• Balance tracking for each user and client ID
• Utilizes OpenZeppelin contracts for enhanced security (ReentrancyGuard, Ownable, Pausable)

Multiple Markets and Client IDs

To support multiple ERC20 tokens, the contract should be deployed separately for each token. This allows for independent markets for different tokens. Additionally, the contract now supports multiple client IDs per user address, enabling more flexible fund management.

Testing

The project includes two comprehensive test suites:

1. Hardhat tests in test/ERC20TokenVault.test.js:

   • Covers all major functionalities
   • Uses MockERC20 tokens to simulate ERC20 token interactions

2. Foundry tests in test/foundry/ERC20TokenVault.t.sol:

   • Provides additional coverage with Solidity-based tests
   • Includes mocks for Aave's Pool and PoolAddressesProvider

To run the tests:

forge test

Usage

1. Deploy the ERC20TokenVault contract with the address of the desired ERC20 token.
2. Users set their fallback wallet using the setFallbackWallet function.
3. Users set their fallback period using the setUserFallbackPeriod function.
4. Users can deposit tokens using the deposit function.
5. Users can withdraw funds at any time when the contract is not paused.
6. Regular interactions (deposits, withdrawals) automatically update the proof of life.
7. Users can manually update their proof of life by calling the updateProofOfLife function.
8. If a user is inactive beyond their fallback period, any wallet can initiate a withdrawal to the designated fallback wallet or the user's address if no fallback is set.

Development

This project uses Hardhat for development and testing. To set up the development environment:

1. Install dependencies: npm install
2. Compile contracts: npx hardhat compile
3. Run tests: npx hardhat test && forge test
4. Deploy (local network): npx hardhat run scripts/deploy.js

Security

The contract incorporates several security measures:

• ReentrancyGuard to prevent reentrancy attacks
• Ownable for access control of critical functions
• Pausable for emergency stops
• Utilizes OpenZeppelin's secure, audited contract implementations

Disclaimer

This is a proof of concept and not intended for production use without further development, auditing, and legal compliance checks.

Contributing

Contributions are welcome! Please open an issue or submit a pull request with your improvements.

License

The license for this project is currently undefined and under consideration. Please check back later for updates on the licensing terms.